Unseasonal rainfall and winter crop
The problems for India’s rural economy seem unending.
Unseasonal rains in the last few days in several parts of the country are once again reported to have damaged the winter crop; production was affected last year as well due to the same reason.
This comes after India suffered two back-to-back years of deficient rainfall during the monsoon.
Although the extent of damage is still not known, a dent in production will naturally affect the overall growth prospect of the economy.
Increasing distress in the farm sector has pushed the government to shift focus to the rural economy and take steps to support rural income. But while it has managed the food economy well despite all this, continued loss of production would make the job more challenging and can also affect monetary policy options.
With the damage to be assessed in coming days, the reality of India’s dependence on the weather is starkly underlined yet again.